LONDON, Sept 22 Reuters British consumers are their most optimistic since the start of 2022 as they turn more hopeful about the economy with inflation on the wane and wages growing, a survey showed on Friday.

The GfK consumer sentiment indicator rose for a second month in a row to 21 in September, the highest since January last year, from 25 in August although it remained below the average of 10 for the survey, which has been running since 1974.

Economists polled by Reuters had forecast a fall to 27.

While this month39;s improved headline score is good news, it39;s important to note many households are still struggling with the costofliving crisis and that economic conditions are tough, Joe Staton, GfK39;s client strategy director, said.

The reality is that consumer confidence remains suppressed, and the financial mood of the nation is still negative.

Households39; expectations for their personal financial situation over the coming year edged up to 2 to 3. A year ago, the reading stood at 40 after energy prices soared.

A gauge of views about the economy over the next 12 months improved more sharply to 24 from 30.

Consumer price inflation dropped to 6.7 in August, down from a 41year high of 11.1 reached in October 2022 but still more than three times the Bank of England39;s target.

The BoE on Thursday paused its long run of interest rate rises as the country39;s economy slowed, holding Bank Rate at 5.25 after 14 backtoback hikes.

The GfK data was based on a…